It’s been a fairly uneventful month so far when it comes to interest rates. Based on this year, I will take it! The Fed did raise rates by ½% which was expected. What wasn’t as expected was the continued deceleration of inflation. Inflation only (ha) rose by 7.1% on a year-over-year basis, that’s down from 7.7% in October which was lower than was expected. Side note, do you know the biggest rise of inflation has been? Would you believe it’s eggs? They are almost up 50% over this year, crazy!Verify your mortgage eligibility (Jan 31st, 2023)
Anyway, this inflation report is the second in a row that has shown inflation moving lower at a faster pace. After briefly flirting with rates under 6% we had a bit of a reversal. Mainly due to the holiday season as there is less trading overall so there tends to be more volatility. This trend will probably continue until next year when the traders get back from vacation. Then we will see if there is more momentum for rates to move lower. Plus we will get more data about inflation and the jobs number.
That’s it for this year, thank you all for a great year! I’m also very grateful for all the wonderful feedback about these market updates, to hear that this information is helpful to you and your clients makes me so happy! I hope everyone has a Merry Christmas and a Happy New Year!!
Recap:Verify your mortgage eligibility (Jan 31st, 2023)
-The Fed raised interest rates by ½%
-Year over year inflation fell to 7.1% which was lower than expected
-Rates are most likely going to be in a holding pattern until the new year
-Merry Christmas!Show me today's rates (Jan 31st, 2023)